Visa Mastercard Swipe Fees Settlement
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visa and mastercard Reach $38 Billion Settlement Over Swipe Fees
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Published November 10, 2025, at 20:47 PST. Updated as needed.
What Happened?
Visa and Mastercard have agreed to a revised settlement worth $38 billion with merchants who have long alleged that the companies unfairly inflated ”swipe fees” – the charges merchants pay when customers use credit and debit cards. The agreement, filed in court, aims to lower these fees and provide merchants with more control over payment processing.
The settlement allows merchants to choose whether to accept specific types of US cards, including commercial cards, premium consumer cards (many rewards cards), and standard consumer cards.Standard consumer card rates will be capped at 1.25% for eight years, a reduction of more than 25% from current rates.
Merchants will also gain increased ability to impose surcharges on card payments, with the option to charge up to 3% without restriction.
The Financial impact
Lawyers representing the merchants estimate the settlement’s value at $38 billion, reflecting projected reductions in swipe fees through 2031. This projection is based on analysis from two experts, including Nobel laureate economist Joseph Stiglitz.
The experts conservatively estimate that the changes resulting from the settlement will save merchants more than $200 billion over the settlement period.
| Fee Type | Current Rate (approx.) | Settlement Rate (Standard Consumer) | Potential Savings |
|---|---|---|---|
| Standard Consumer | 1.65% – 2.00% | 1.25% (capped for 8 years) | 0.40% – 0.75% per transaction |
| Premium/Rewards Cards | Variable, frequently enough higher | Merchant Choice | Potential to opt-out and avoid higher fees |
| Commercial cards | Variable, often higher | Merchant Choice | Potential to opt-out and avoid higher fees |
Company Responses
Visa, headquartered in San Francisco, California, stated that the settlement provides merchants of all sizes with critically important relief, increased flexibility, and more options for managing customer payments. visa’s official website provides further information about their services.
Mastercard, based in Purchase, New York, emphasized that smaller merchants woudl notably benefit from the increased flexibility, lower costs, and simplified rules. Mastercard’s official website details their commitment to supporting businesses.
Notably, neither Visa nor Mastercard admitted any wrongdoing as part of the settlement agreement. Shares of both companies experienced minimal change in afternoon trading following the proclamation.
Background: The Swipe Fee Controversy
Swipe fees, officially known as interchange fees, have been a point of contention between